Updated September 29, 2022
World Trade Organization
The World Trade Organization (WTO) was established in
developing countries across major issues. Developing
1995 following the ratification of the Uruguay Round
countries sought the reduction of agriculture tariffs and
Agreements, and today includes 164 members. It succeeded
subsidies by developed countries, nonreciprocal market
the 1947 General Agreement on Tariffs and Trade (GATT),
access for manufacturing goods, and protection for services
created as part of the post-WWII effort to build a stable,
industries. Developed countries sought reciprocal trade
open international trading system. The WTO has three basic
liberalization, especially access to advanced developing
functions: (1) administering its agreements; (2) serving as a
countries’ industrial and services sectors, while retaining
negotiating forum for trade liberalization and rules; and (3)
some protection for agriculture. Agriculture, where
providing a mechanism to settle disputes. The multiple
multilateral solutions arguably remain ideal, is among the
WTO agreements cover trade in goods, agriculture and
thorniest issues left on the Doha agenda. In 2015, members
services; remove tariff and nontariff barriers; and establish
agreed to limited deals, including on export subsidies and
rules on government practices that directly relate to trade
measures for least developed countries. Doha’s legacy may
(e.g., trade remedies, technical barriers to trade, intellectual
be the successful negotiation of the 2013 Trade Facilitation
property rights (IPR), and government procurement). The
Agreement, which removes customs obstacles at the border.
agreements are based on the principles of non-
Table 1. GATT/WTO Rounds
discrimination—most-favored nation treatment, national
treatment, fair competition, and transparency of trade rules
Year Name
Subjects covered
Members
and regulations. WTO rules allow for exceptions, such as
1947- Geneva,
5 rounds of tariff reductions
23 (1947);
preferential treatment and flexibilities for developing
1961 Annecy,
26 (1961)
countries and trade agreements outside the WTO.
Torquay,
Geneva II,
The GATT/WTO system over time has led to a significant
Dil on
reduction of trade barriers, supported trade expansion and
economic growth, and helped manage trade frictions. At the
1964- Kennedy
Tariffs and antidumping measures
62
1967
same time, the WTO faces serious challenges. One key
concern raised by experts is that the WTO is losing
1973- Tokyo
Tariffs, antidumping, subsidies, TBT,
102
relevance due to its inability to adapt to the modern global
1979
government procurement
economy. For decades, members struggled to negotiate a
1986- Uruguay
Tariffs, nontariff measures, rules,
123
successful round of major trade liberalization since 1994.
1994
services, IPR, dispute settlement,
More recently, many have increasingly resorted to measures
textiles, agriculture, WTO institution
that may violate core trade rules. Recent challenges, such as
2001- Doha
Tariffs, nontariff measures, agriculture, 142 (2001);
the Coronavirus Disease 2019 (COVID-19) pandemic and
2015*
services, trade facilitation, trade
164
Russia’s 2022 war in Ukraine have disrupted global trade
remedies, and development
(current)
and supply chains and prompted trade-related responses.
Source: WTO.
WTO members have proposed various reforms to the
Note: *In 2015, WTO members failed to reaffirm Doha’s mandates.
institution in attempts to safeguard and improve it.
MC12
Congress has recognized the WTO as the “foundation of the
Ministerial Conferences (MC) are generally seen as action-
global trading system,” and plays a legislative and oversight
forcing events for the WTO. After prolonged delay, WTO
role over WTO agreements. Some Members have expressed
members held the 12th MC in June 2022, with outcomes on
support for WTO reforms and U.S. leadership. The Biden
several initiatives, including a limited multilateral
Administration committed to renewed U.S. support for
agreement on fisheries subsidies. The agreement, subject to
multilateralism and WTO reform. Amid debates over the
prolonged talks since 2001, commits to curb certain
WTO’s future, several issues may be of interest to
harmful subsidies. The deal was notable as the only current
Congress, including WTO agreements’ effects on the U.S.
multilateral negotiation and the first to cover sustainability
economy, outcomes of reform and negotiation efforts, and
issues. Members are to continue negotiations on key issues
the value of U.S. membership and leadership.
left out of the final deal—see CRS In Focus IF11929. Other
The Doha Round
decisions include extending a moratorium on e-commerce
duties and a package on WTO responses to emergencies,
The Doha Development Agenda, the latest “round” of
covering food security, a World Food Programme
multilateral negotiations, was launched in 2001, but ended
exemption from export prohibitions, and pandemic
in stalemate, with no clear path forward (Table 1). The
WTO’s
responses, including an IP waiver (see below). Observers
large diverse membership and the “single
undertaking” approach
viewed MC12 outcomes as boosting the WTO’s credibility,
made consensus on the broad Doha
while urging continued progress on outstanding critical
mandate difficult, and these aspects continue to beset
issues, such as on agriculture, subsidies, and WTO reform.
ongoing talks today. Doha was characterized by persistent
WTO leadership framed the deals as demonstrating that the
differences among the United States, European Union, and
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World Trade Organization
multilateral trading system “can respond to some of the
major role. U.S.-EU-Japan talks, recently restarted, aim to
most pressing challenges of our time.”
strengthen rules on such issues, including on subsidies.
Plurilateral Initiatives
COVID-19. A key focus of MC12 was the global trade and
While multilateral efforts have generally progressed slowly,
economic disruptions due to COVID-19, which tested
several plurilateral talks among subsets of members are
coordination in global trade policies, upset supply chains,
underway. Agreements with U.S. membership cover key
and resulted in trade protectionism. At the onset, the WTO
sectors and are viewed as potential models for other efforts.
committed to work to minimize disruptions to trade, and
 Government Procurement Agreement (GPA).
encouraged WTO members to notify new trade measures.
Provides market access for various nondefense
At the same time, many countries reaffirmed the trading
government projects to its 48 signatories. The revised
system, lifted temporary restrictions, and viewed the WTO
2014 GPA expanded market access and covered entities.
as playing an important role in tackling trade policy
 Information Technology Agreement (ITA). A subset
challenges of the pandemic. Some members advocated for a
of members in 2015 expanded the 1996 ITA product
plurilateral deal on medical goods. Delay in production and
coverage for tariff-free treatment, eliminating tariffs on
distribution of vaccines led to calls by some countries to
201 new goods, applied on a MFN basis to all members.
waive certain IPR rules. Such proposals, while contentious,
 Joint Initiative on Services Domestic Regulation.
gained momentum following the Biden Administration’s
Concluded in December 2021, 67 members agreed to
support. The MC12 decision provides for a five-year waiver
facilitate services trade by improving transparency on
and clarifications of certain WTO requirements concerning
domestic processes and addressing regulatory barriers.
patents and compulsory licenses for COVID-19 vaccines.
(For more information, see CRS Report R47231.)
Ongoing plurilateral talks with U.S. participation include
the Joint Initiative on E-commerce with over 80 members.
WTO Reform. At MC12, WTO members did not announce
U.S. priorities include disciplines on cross-border data
concrete solutions, but agreed on a process for addressing
flows and bans on data localization and forced technology
reforms. They committed “to improve all [WTO] functions”
transfer. The Trade and Environmental Sustainability
and emphasized the process “shall be Member-driven,
Structured Discussions (TESSD) among more than 70
open, transparent, inclusive.” The Biden Administration has
members aims to advance a work plan on trade-related
supported WTO reform so that the institution “empowers
climate measures and environmental goods and services.
workers, protects the environment, and promotes equitable
The United States and others point to plurilateral deals as a
development.” Many U.S. frustrations with the WTO are
key way forward to address new issues. Some members
shared by past U.S. administrations, some Members of
raise concerns that plurilaterals, while useful, could
Congress, and other WTO members, but approaches to
potentially marginalize nonparticipating countries or allow
solutions among WTO members differ. Several U.S. and
for free riders who benefit from others’ commitments.
other proposals remain under debate, including on WTO
Ongoing Challenges
transparency and notification requirements, and extent of
special and differential treatment for developing countries.
Since the Doha Round, intractable issues and active debate
Dispute settlement also has been a major focus of reform.
have characterized the WTO. While MC12 appeared to
To supporters, the DS system is considered a WTO success.
reenergize efforts and optimism, others point to significant
Others are concerned about the system’s legitimacy absent
issues left aside. Many WTO members concur that the
reforms and if no new WTO agreements are reached, thus
WTO must reform its negotiating, monitoring, and dispute
preventing key issues from being adjudicated. Successive
settlement (DS) functions to remain an effective institution.
U.S. administrations and some Members of Congress have
The impact of new WTO agreements reached and prospects
voiced DS concerns, including over perceived “judicial
for ongoing talks remain key oversight issues for Congress.
overreach” in panel decisions, especially on trade remedies.
Some Members have expressed views on WTO negotiating
The Trump Administration’s blocking of appointments to
priorities and reforms through resolutions and directed the
the Appellate Body (AB)—which the Biden Administration
executive branch to increase U.S. engagement in specific
continued—led to the AB ceasing to function in 2019. In
areas. Congress could hold oversight hearings or submit
2020, the EU and others put into effect an appeal arbitration
letters to ask USTR about specific actions or plans.
arrangement to hear their cases. At MC12, members
Negotiating Agenda. Some issues left on the Doha agenda
committed to “having a fully and well-functioning dispute
remain contentious and appear intractable, e.g., attempts to
settlement system accessible to all Members by 2024.”
discipline agricultural subsidies or resolve concerns on
Unilateral Enforcement Actions. Some observers are
public stockholding programs. Further, since 1995, new
concerned that U.S. tariffs imposed by President Trump and
trade barriers, technology advances, and other issues have
maintained under Biden, and counter-tariffs by other
emerged, prompting countries to seek to address issues,
countries have further strained the WTO and DS system.
such as digital trade, state-owned enterprises, and climate
Concerns include that unilateral measures, some pursued in
change that pose challenges to the trading system. MC12
the name of national or economic security, may undermine
provided an opportunity for decisions on new rules and
the WTO’s credibility and lead to new trade restrictions.
taking stock of the evolving agenda. The WTO Director-
While WTO rules offer flexibility for temporary measures
General emphasized the importance of continued progress
justified by national security or health crises, the spread of
by MC13, building on this groundwork. U.S. officials also
pandemic-related trade restrictions amplified such concerns.
contend that WTO rules were not designed to effectively
handle the challenges of countries like China that are not
Cathleen D. Cimino-Isaacs, Analyst in International Trade
fully-fledged market economies and where the state plays a
and Finance
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World Trade Organization

IF10002


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